Lumentum Holdings Inc. saw its stock price rise by 5.01% as it crossed above the 5-day SMA, despite the broader market decline with the Nasdaq-100 down 1.56% and the S&P 500 down 1.39%.
The company reported a significant revenue forecast of $650 million for Q2, representing a 62% year-over-year increase, driven by robust demand for its optical and photonic components. This follows a strong Q1 performance where Lumentum achieved $337 million in revenue, a 58% increase from the previous year. Analysts maintain a bullish outlook on the company, anticipating continued growth in the cloud and AI infrastructure market, which is expected to see substantial investments from major hyperscalers.
This positive outlook, coupled with the company's strong performance in the optical and photonic sectors, suggests that Lumentum is well-positioned to capitalize on the growing demand in advanced manufacturing and AI applications, despite the current market headwinds.
Wall Street analysts forecast LITE stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for LITE is 303.36 USD with a low forecast of 147.00 USD and a high forecast of 470.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
14 Analyst Rating
Wall Street analysts forecast LITE stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for LITE is 303.36 USD with a low forecast of 147.00 USD and a high forecast of 470.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
9 Buy
5 Hold
0 Sell
Moderate Buy
Current: 332.450
Low
147.00
Averages
303.36
High
470.00
Current: 332.450
Low
147.00
Averages
303.36
High
470.00
Citi
Papa Sylla
Buy
maintain
$240 -> $450
2026-01-23
New
Reason
Citi
Papa Sylla
Price Target
$240 -> $450
AI Analysis
2026-01-23
New
maintain
Buy
Reason
Citi analyst Papa Sylla raised the firm's price target on Lumentum to $450 from $240 and keeps a Buy rating on the shares.
Susquehanna
Christopher Rolland
Positive
maintain
$230 -> $420
2026-01-22
Reason
Susquehanna
Christopher Rolland
Price Target
$230 -> $420
2026-01-22
maintain
Positive
Reason
Susquehanna analyst Christopher Rolland raised the firm's price target on Lumentum to $420 from $230 and keeps a Positive rating on the shares. The firm updated targets in the semiconductor group as a part of an earnings preview. Susquehanna generally expects in-line results to modest upside in Q4, amid a "steadying upcycle" and a broadening of the artificial intelligence infrastructure supply chain. While the industrial end market is improving, auto remains somewhat challenged, the analyst tells investors in a research note.
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Stifel
NULL -> Buy
maintain
$220 -> $400
2026-01-22
Reason
Stifel
Price Target
$220 -> $400
2026-01-22
maintain
NULL -> Buy
Reason
Stifel raised the firm's price target on Lumentum (LITE) to $400 from $220 and keeps a Buy rating on the shares as the firm provided updated thoughts on core optical companies under its coverage at the start of 2026. Given valuation consideration and expected near-term execution, the firm leans "most favorably" towards Coherent (COHR), but continues to expect positively biased estimate revisions for Lumentum and Ciena (CIEN) as well, the analyst tells investors.
Mizuho
Outperform
upgrade
$325 -> $455
2026-01-09
Reason
Mizuho
Price Target
$325 -> $455
2026-01-09
upgrade
Outperform
Reason
Mizuho raised the firm's price target on Lumentum to $455 from $325 and keeps an Outperform rating on the shares. The firm adjusted targets in the semiconductors and semiconductor capital equipment group as part of its 2026 outlook. Mizuho sees continued upside for the group in 2026 due to "attractive valuations," but more modest than 2025. The analyst' top sectors in 2026 are AI accelerators and wafter fab equipment, Optical, and memory, while the firm remains cautious on electric vehicles, autos and analog as well as computers and handsets. Mizuho's top picks for 2026 are Nvidia, Lumentum and Broadcom.
About LITE
Lumentum Holdings Inc. is a designer and manufacturer of optical and photonic products enabling optical networking and laser applications worldwide. Its segments include Cloud & Networking and Industrial Tech. The Cloud & Networking segment products include a comprehensive portfolio of optical and photonic components, modules, and subsystems supplied to cloud and communications network operators and network equipment manufacturers building cloud data center infrastructure, including products for artificial intelligence and machine learning (AI/ML) and data center interconnect (DCI) applications, and communications service provider networks, including products for access (local), metro (intracity), long-haul (city-to-city and worldwide), and submarine (undersea) network infrastructure. The Industrial Tech segment products include solid-state lasers, kilowatt-class fiber lasers, diode lasers, ultrafast lasers, and gas lasers, which address applications in numerous end-markets.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
